PETROBRAS, REPSOL SIGN DEALS
Bolivia completes oil nationalisation plan
10/29/2006
President Evo Morales joined representatives of eight foreign companies for a signing ceremony in the capital La Paz marking the achievement of one of his nine-month-old administration's central goals.

President Evo Morales completed his ambitious oil and gas nationalisation plan with the eleventh-hour signing of contracts allowing Petrobras, Repsol YPF and other international petroleum companies to continue operating in Bolivia under state control.
Just after a midnight Saturday deadline to wrap up the nationalisation talks, Morales joined representatives of eight foreign companies for a signing ceremony in the capital La Paz marking the achievement of one of his nine-month-old administration's central goals.
Inking new deals with the Bolivian government were two separate affiliates of Petrobras, Repsol YPF, British Gas Bolivia Corporation, Andina, Chaco, Matpetrol, and Pluspetrol.
The French company Total SA and the U.S.-based Vintage Petroleum signed nationalisation deals on Friday. Morales nationalised the South American country's oil and gas industry on May 1.
Morales on Saturday said that nationalisation and the Argentine deal would provide Bolivia some US$1 billion (euro790 million) in revenues this year but in four years' time could produce as much as US$4 billion annually.

Norway warns on energy transparency
By Carola Hoyos in London
Published: October 15 2006 22:40 Last updated: October 15 2006 22:40
Norway’s foreign minister has warned that achieving financial transparency in the murky world of oil and other national resources has become more important, but also more difficult in the past two years.
As the oil price has trebled, governments of oil-rich states, Russia, Venezuela and Bolivia, have wrested more control over their precious resources from international companies, and willingness to disclose the revenue stream they have created has diminished.
Johnas Gark Store, Norway’s foreign minister, said in an interview: “It’s all the more important and challenging when you are dealing more and more with governments and national oil companies that have the tendency to be more secretive.”
Mr Store was speaking on the eve of Monday’s Extractive Industries Transparency Initiative meeting in Oslo, where governments and companies expect to develop voluntary reporting standards that would hold governments and oil companies to account over how much they are paid for their resources. Norway is widely seen as the only energy-rich country not to have the curse of corruption and poverty, and is likely to take over the leadership role of the EITI from the UK, which founded it in 2002.
“The initiative becomes even more important in times of high prices because income becomes more intense,” Mr Store said. The past three years have not only seen oil prices surge, but other commodities such as copper and gold have reached record prices as well.
Many of the world’s 3.5bn poor people live in resource-rich countries. In some such as Nigeria, Africa’s biggest oil producer, their continued poverty has led to instability, hostage-taking and rebel attacks against oil installations. In Iraq, which has the world’s third largest reserves of oil, pipelines are a favoured target of insurgents angry with the instability that has followed the US toppling of President Saddam Hussein.
In Russia, high oil prices have led the Kremlin on a campaign to resume full control of the country’s vast resources. Most recently Gazprom, Russia’s state gas monopoly, announced it would develop the giant Arctic Shtokman gas field without foreign help. The decision, which will also see gas that had been destined for the US redirected to Europe, was widely seen as a political manoeuvre in the battle between Washington and Moscow over Russia’s bid for membership of the World Trade Organisation.
Joseph Stanislaw, founder of the JAS Stanislaw Group consulting firm, said: “The whole issue of transparency is critical to international politics. Energy is central to every national topic, including national security. For countries that are not democratic or transparent, why should they give up their advantage by making public their energy data?” He added: “Energy is a tool of foreign policy. When prices are high it becomes even more essential for those who have it to keep control of it and its data as a tool of wealth and influence.”
Copyright The Financial Times Limited 2006
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Oil Showdown on Sakhalin IslandThere is an emerging showdown in Russia surrounding Sakhalin Island oil projects.
The Russian Natural Resource Ministry's threat last week to cancel Shell-led Sakhalin Energy's environmental license -- coupled with complaints about projects led by ExxonMobil, Total and TNK-BP -- has stoked fears that the state is seeking to either dilute foreign participation in the country's largest oil and gas projects, or change them to give the state a bigger slice of the profits.

By Michael J. Economides
LNG in Asia-Pacific
Within the Asia Pacific region, growth in LNG demand is strong and expected to stay that way, rising from the almost 150 million tons traded globally today to more than 300 million tons by 2015.
This demand is driven by the following:
- The struggle to grow North American gas reserves and production – for the past few years, unconventional gas (CBM, silt/shale, coal) has been the only source of U.S. production growth.- Rapid growth in regasification terminal capacity in the U.S. and Mexico.- Barriers to the development and delivery of Alaskan gas to the lower 48 states.- The almost complete lack of indigenous gas resources in northeast Asia.- New and emerging markets with massive growth potential in China and India, and smaller markets in Thailand, Singapore, and the Philippines.- Industrialization in China that is creating an urgent need for power. China has eight of the 10 worst-polluted cities on earth, which means that there are immediate health reasons for cleanly-generated power. Also, that urbanization is producing a growing need for peaking power.- The environmental premium attached to more emissions-intensive fuels such as coal. - The development of Canadian tar-sands projects, and Canada’s declining gas export capacity. - Success in markets outside the region, such as in the U.K. Over the space of a few years, the country has developed the infrastructure and supply necessary to turn it from a gas exporter into a net importer, with gas available from a number of pipeline and LNG import options.- The growth, liberalization, and gradual commoditization of a global LNG market in which the U.S. and European markets will set prices. Qatar will be a swing supplier, and arbitrage opportunities will favor large portfolio players with widespread sources of supply and captive shipping.
Pipeline gas demand will mirror LNG demand growth, but is more constrained by cross-border pricing and ownership issues. Prospective pipeline projects to deliver gas from West and East Siberia, Sakhalin, Kazakhstan, and Turkmenistan into northeast Asia, and via the Trans-Asian system into southeast Asia, have been discussed for more than a decade, but are hampered by infrastructure costs, competition between importing countries, and (at least in the case of northeast Asia) an absence of viable commercial frameworks and pricing mechanisms.
Other key concerns of Asia Pacific Economic Cooperation officials are capacity expansion, education, and knowledge sharing, all of which are also prominent on the APGAS agenda. One need look no further than Malibu Beach in California, and the current uninformed fuss being created there over potential imports of LNG into that energy-hungry state, to see the need for informed and educated debate of real issues, rather than the frivolous, loud, graceless, and ignorant public evangelism about imagined threats to real estate values, designed to generate fear at the expense of rational discourse about sustainable access to clean and secure energy.

Japan, India hunt for LNG as supply tigthens
Fri Oct 13, 2006 7:17 PM IST

By Stuart Penson
ROME (Reuters) - Japan and India are among big consumers of liquefied natural gas (LNG) scouring the world for spot cargos and trying to negotiate new supply contracts as competition intensifies in a tightening market.
Despite a boom in the construction of plants to freeze natural gas into LNG, supply is lagging demand, partly because of a drop in exports from major supplier Indonesia, industry executives told a conference on Friday.
Shortages of capacity to convert LNG back into normal gas for consumption, and problems with differing gas qualities between regions are also problematic.
"The LNG market is currently a seller's market," Keiji Takemori, General Manager of Energy Resources Development at Japan's second biggest utility Osaka Gas, said.
Osaka Gas Co Ltd supplies about 6.8 million customers in the Kansai Region of western Japan. Its annual LNG purchases total 6.8 million tonnes, roughly five percent of world LNG trade volume.
The company has tried to secure its long term gas needs by investing in upstream LNG production projects in Australia, Indonesia, Norway and Oman. The company is in talks with Chevron Corp to buy a stake in Australia's Gorgon project, but it says competition for equity stakes in LNG projects is tough.
"There are reduced opportunities for equity investment by LNG buyers," Takemori said.
Japan in particular has felt the drop in Indonesian exports, which traders say in due to new policies to use more gas domestically and to the need for investment in Indonesian fields.
India, whose fast growing economy is forcing up energy demand, has started buying spot cargos of LNG to supplement contracted supplies.
"We have started taking spot cargos," Amitava Sengupta, a director at India's Petronet LNG LTD, said. "So far we have taken 10 cargos. I think there will be 4 to 6 more this year."
India is driving ahead with plans to boost the number of terminals it has to import LNG. Also it has taken up an option with Qatar's Rasgas to increase the volumes it takes under an existing contract, Sengupta said. The extract volume will not kick in until 2009
Analysts are divided on when the LNG market might swing back into balance.
One industry source said there were already signs that higher prices in Europe had started hitting demand in Spain. But demand remains strong in most regions.

China, Norway pledge to promote military relations


A senior Chinese military officer said here Wednesday that China pledged to promote relations with Norwegian armed forces.
Liang Guanglie, chief of the general staff of the Chinese People's Liberation Army (PLA) made the remarks in a meeting with Norwegian chief of Defence Staff Arne Bard Dalhaug.
"China values Norway's role in international affairs and is willing to further strengthen consultation and cooperation with Norway to promote world peace and stability," said Liang, who is also a member of Chinese Central Military Commission (CMC).
Liang also briefed Dalhaug China's path of peaceful development. He said China will stick to the path and will never seek hegemony.
"China's choice of peaceful development is not an act of expediency, but a promise of Chinese government and people to the whole world," Liang said.
Dalhaug said Norwegian and Chinese armed forces have made sound cooperation, which laid a solid foundation for the future development of bilateral ties.
The two armed forces share similar ideas in military construction though the two countries are far apart, said Dalhaug, adding that he expected the visit could intensify the bilateral friendly cooperation.
Dalhaug and his delegation arrived in Beijing on Tuesday.
Source: Xinhua

First RasGas LNG delivery reaches Mexico Thursday, October 12, 2006-->Web posted at: 10/12/2006 4:2:55Source ::: THE PENINSULA
The Fuwairit being loaded with LNG.
doha • Ras Laffan Liquefied Natural Gas Company Limited (RasGas) made its first delivery of liquefied natural gas (LNG) from the shores of Qatar to Mexico on October 8, a press release issued by RasGas said yesterday.
This historical event followed a spot sale to Shell Western LNG B V by Ras Laffan Liquefied Natural Gas Company Limited (II).
The LNG cargo was loaded on board the LNG tanker Fuwairit, and departed from Ras Laffan, on September 16, the press release added.
The voyage of 22 days over a distance of 9,915 nautical miles was routed through the Suez Canal and the Straits of Gibraltar to the Terminal de LNG de Altamira, Mexico.
Terminal de LNG de Altamira is the first LNG receiving terminal in Mexico and came into operation only in August of this year.
At a distance equivalent to 18,363 kilometres this is the longest distance any RasGas LNG carrier has sailed, or RasGas LNG has travelled.
Nasser Al Nami, RasGas Commercial and Shipping Manager, said: “This delivery of LNG from RasGas to Altamira, Mexico, marks a milestone in the development of our vision to be the pacesetter in the LNG industry and enhances our reputation as a world renowned LNG supplier that delivers on time, every time.”
The Fuwairit is RasGas’ first dedicated ship, and was delivered to RasGas on January 13, 2004 by the owners Camartina Shipping Inc.
The vessel was built in the Samsung Heavy Industries, Korea, and has a cargo capacity of 138,000m3.
Since delivery, the Fuwairit has made 32 cargo deliveries from Ras Laffan to RasGas’ customers in the Far East and Europe

El Paso pulls out
By LEDEDRA MARCHE
Senior FN Reporter
El Paso Corporation, one of three energy companies competing to construct a liquefied natural gas (LNG) pipeline from The Bahamas to Florida, has pulled out, Reuters confirmed over the weekend.
The Houston-based company's Seafarer pipeline was to stretch to Palm Beach County from the eastern end of Grand Bahama.
A second company, AES, proposes to construct a pipeline from Ocean Cay, a man-made island off Bimini to Dania Beach, Florida, while Tractebel Calypso's project was designed to build a pipeline from the Freeport Harbour to Florida.
Government has been deciding for more than two years on whether or not to grant permission for the construction of the LNG pipeline.
El Paso Corporation owns North America's largest natural gas pipeline system and is one of North America's largest independent natural gas producers.
The company withdrew its application with the Federal Energy Regulatory Com-mission last week, an El Paso spokesperson revealed, citing three factors.
One, according to Reuters, is that there are no shippers; the other has to do with questions surrounding the infrastructure for LNG facility development within The Bahamas and the other reportedly was the environmental constraints and requirements dependent for the project offshore Florida.
AES, a Virginia-based company, plans to construct a $650 million LNG re-gasification terminal at Ocean Cay.
In 2001, the Free National Movement (FNM administration approved, in principle, the construction and operation of the LNG re-gasification facilities being proposed in The Bahamas.
The natural gas is intended to be pumped via a pipeline to Florida for the primary benefit of the United States which is reportedly facing an energy crisis.
The Bahamas Environment and Scientific Technology (BEST) Commission cautioned the now Progressive Liberal Party (PLP) government not to proceed with any final approval of such facilities until national security and safety were properly addressed.
In 2004, Tractebel North America and El Paso joined forces to construct a single pipeline connecting LNG terminals in Grand Bahama to South Florida.
In fact, the two linked with Florida Power and Light (FPL), ending the fight to secure government's approval to build an LNG pipeline from two different locations on the island.
Tractebel's proposal called for the pipeline to be constructed at the property where the Bahama Cement Factory is located. El Paso was endeavouring to have it constructed from South Riding Point, East Grand Bahama.
Florida Power and Light uses 54 percent of the natural gas consumed in Florida, and according to Prime Minister Perry Christie, if The Bahamas is to be a supplier, it is guaranteed to benefit from the LNG project.
Reports say, El Paso was focused exclusively on the pipeline aspect of the project and would have no involvement in the development of the re-gasification facility.
FPL Group Resources and Tractebel North America were to be equal owners of a proposed receiving terminal in Grand Bahama and a Florida marketing company called Sailfish Natural Gas Company.
And, the decision on which site to use was left up to the government.
The BEST Commission had reportedly advised government not to approve Tractebel's Calypso project proposal because the site at Freeport was deemed inappropriate and the El Paso site at High Rock was rejected because it is too close to a densely populated area.
The agreement ultimately is to construct one of the pipelines from Grand Bahama to Florida: the proposed Seafarer pipeline would stretch to Palm Beach County while the Tractebel Pipeline project would extend to Broward County.
Meanwhile, government has revealed its intent to grant AES approval to construct its multi-million dollar LNG re-gasification terminal at Ocean Cay.
The project reportedly entails sending 842 million cubic feet of gas a day to Florida.
Several weeks ago, the Opposition FNM Party called on the government to "come clean" and advise the Bahamian people of the exact terms and conditions of any approvals granted or anticipated for the AES project.
The party is opposed to supporting the introduction of a dangerous industry to The Bahamas without all proper precautions and safeguards in place.

Russia to handle LNG venture aloneBy UPIOct 9, 2006, 19:00 GMT
MOSCOW, Russia (UPI) -- Russia`s OAO Gazprom Monday said it would alone develop a massive natural gas field in the Barents Sea.
The company`s chief executive surprised the world`s energy industry Monday by announcing that none of the potential Western partners it had been considering would partner in the Shtokman gas field development, Novosti reported. He also said production would be sold in Europe, not as liquid natural gas in the United States, as had been expected.
Alexei Miller said Gazprom had failed to find partners able to propose acceptable conditions for the development of the deposit, which will be the sole source of natural gas for the North European Gas Pipeline leading from Russia to Germany across the floor of the Baltic Sea.
'Gazprom was considering giving 49 percent in the Shtokman project to foreign companies for a long time,' Gazprom said. 'But foreign companies failed to offer assets commensurate with the volume and quality of the Shtokman deposit`s reserves.'
The short list of potential partners had been Norway`s Statoil and Norsk Hydro, France`s Total and U.S. giants Chevron and ConocoPhillips.
Copyright 2006 by United Press International

Liquefied gas port plan advances
10/8/2006, 12:25 p.m. CT
The Associated Press

NEW ORLEANS (AP) — Efforts to get McMoRan Exploration Co.'s proposed liquefied natural gas port licensed after a $30 million modification appear to be going more smoothly the second time around.
"We're very confident that we'll get the permit, especially since there's no opposition," said McMoRan spokesman Bill Collier of the project called the Main Pass Energy Hub, to be built 16 miles east of the mouth of the Mississippi River.
At a public hearing in New Orleans last week, just three people spoke, and all were in favor of the $1 billion port, which is expected to bring thousands of construction jobs and at least 100 permanent jobs. Hearings held last week in Alabama and Mississippi drew no public comment.
That's a change from previous hearings on the issue which drew strong opposition because McMoRan intended to use an open-loop system that required the use of water from the Gulf of Mexico warm the supercooled liquefied gas. Environmentalists said the method would kill an unknown amount of sea life, including fish and fish larvae.
That opposition eventually led Gov. Kathleen Blanco to veto the project.
"We aren't anti-LNG, we're simply in favor of moving forward with the technology that is guaranteed to help protect our already depleted fish population in the gulf," said Aaron Viles, campaign director with the gulf Restoration Network, which has fought open-loop LNG terminals.
McMoRan modified its plans to resurrect the project and now will use a closed-loop system in which some of the imported gas, rather than seawater, will be used to warm the liquefied gas.
The change will cost McMoRan $30 million to modify the terminal and $25 million a year in lost revenue from the natural gas it will use in the closed-loop system, Collier said.
Blanco and the governors of Mississippi and Alabama have 45 days to approve or veto the port. At that point, the Maritime Administration can approve or deny the port, but could wait another 45 days, until Jan. 3, to make its decision, said Mark Prescott, chief of deepwater ports for the U.S. Coast Guard.
If the LNG port wins approval, McMoRan will negotiate contracts for the imported gas and then begin final design, engineering and construction of the port, all of which will take three years, Collier said.
The project would reconfigure platforms McMoRan previously used for sulfur mining to allow ships to dock and unload natural gas. The port will use salt domes to store the natural gas.
___
Information from: The Times-Picayune, http://www.timespicayune.com/
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Date:08/10/2006 URL:
Petronet LNG: Buy
Raghuvir Srinivasan
The company would graduate to the next level if Qatar picks up equity and agrees to supply additional LNG.

After being in hibernation for the last couple of months when it remained range-bound in the Rs 45-50 band, the Petronet LNG stock turned active on Thursday hitting the upper circuit filter at Rs 58. While the stock appears fully priced after the surge, long-term investors can still take positions at the current price.
The capacity expansion at Dahej and the prospect of an important deal for LNG supply being tied up soon offer confidence in the long-term even as near-term earnings get a boost from the company's strategy of contracting spot LNG cargoes for ready buyers.
An acceptance by Qatar of the government's offer to pick-up equity in the company will be a big positive as the former will turn into a stakeholder in Petronet from the position of just being a supplier of LNG. Given India's growing appetite for energy, especially natural gas, Qatar's interest in Petronet may ensure adequate LNG supply on favourable terms.
Sole LNG play
Petronet LNG, promoted by IOC, ONGC, BPCL and GAIL, has a 25-year agreement for import of 7.5 million tonnes of LNG from Ras Gas of Qatar.
The Dahej import and re-gasification terminal takes up five million tonnes of this now; supplies of the balance will commence in 2009 when the capacity at Dahej is doubled.
Petronet is also in the process of beginning work on a second import terminal at Kochi, which is likely to go onstream by 2011 taking the company's total re-gasification capacity to 15 million tonnes per annum.
The demand for natural gas is projected to shoot up to 300 million standard cubic metres per day by 2011 with supply lagging, leaving enough scope for Petronet's business.
The key, of course, will be availability of adequate quantum of LNG on long-term contract. Petronet is in talks with the operators of the Northwest Shelf LNG project in Australia for a possible long-term supply for the planned Kochi terminal.
This is in addition to the request for 10 million tonnes placed with Qatar last week. The LNG business has turned into a sellers' market now and there is big demand for the existing un-contracted supply sources, including in Qatar.
Access to LNG and its pricing will, therefore, constitute the major challenges facing Petronet in the medium-term, which will be covered if Qatar becomes a stakeholder in the company.
Assuming this does not happen, Petronet will be faced with a stiff challenge in arranging long-term supply for its expansion projects at competitive prices.
Along with the prevailing price of liquid fuel alternatives such as naphtha and fuel oil, the economics of the natural gas market will be determined by domestically produced gas, which is expected to enter the market by 2009.
Therefore, it is important for Petronet to get the best possible LNG price from its suppliers for it to be competitive in the domestic market.
Spot support

Given that buoyancy in revenue and earnings can come only from higher volumes, Petronet has actively sought out spot market LNG cargoes. The company has contracted four such cargoes in the first half of this fiscal with an equal number likely in the second.
The company has not faced any difficulty in marketing this gas at almost double the existing price given the comparatively high prevailing prices of liquid fuel alternatives. The advantage of this strategy is that re-gasification charges go straight to the bottomline as there is no extra cost involved. Thanks to this, earnings received a boost in the first quarter.
Spot cargoes will be a critical factor in keeping near-to-medium/term earnings and revenues buoyant till capacity expansion is completed and LNG from long-term contracts starts flowing in.
Investors with a long-term perspective can accumulate the stock at current levels.
© Copyright 2000 - 2006 The Hindu Business Line

Need 7.5-10 million metric tonne of LNG: Petronet LNG
On the back of talks of a stake sale from Petronet LNG to Qatar Company, CEO & MD of Petronet LNG, P Dasgupta says that the stake sale is indeed very likely. He says that the purpose of this stake sale is for the expansion of the rigs.-->
As a result of all the planned expansion, he says that the company will need additionally close to 7.5 - 10 million metric tonne LNG.
Excerpts from CNBC - TV18’s exclusive interview with P Dasgupta:
Q: How much stake is likely and what is the purpose of this stake sale to Qatar Company?
A: As you know we have already got an approval for USD 100 million fully convertible bond. This when converted would represent equity stake of anywhere between 7.5% - 12.5%, depending on the price at which these bond are going to be converted.
The due diligence process has started off and we will have to negotiate the price at which the bonds will convert. So I can't tell you a fixed percentage today. It will all depend on the price, which is agreed upon for the bonds to convert.
The purpose of this stake is for the expansion of the rigs. We are creating a new terminal in Kochi, and there is also the possibility of an LNG plant in Ratnagiri.
All put together, we will need additionally close to 10 million metric tonne or maybe 7.5 million metric tonne of LNG.
Today when we met the Finance Minister, we made a request for additional LNG of close to 7.5 million metric tonne. We are today Qatar’s single largest buyer in the world. So let's hope that we will get another 7.5 million metric tonne.
Q: Can you give us a ballpark as to at what price you want to convert these bonds, and will you be looking at selling some more stake as well?
A: Generally fully convertible bonds, the kind which several Indian companies have done in the last two years, the conversion premium is generally between 25-45%, depending on the current market price.
So at the lower end, if my current market price when we strike the deal is going to be Rs 60, then at 25% it would mean that the conversion price could be Rs 75. If it is 40%, then it could be Rs 85.
Cont'd on page 2...
Q: Do you want to seal this relationship with Qatar even further going forward by giving them a greater stake and maybe a role in the management of the company?
A: Nobody has a role in the management of the company other than inviting a Director on the Board. For the day-to-day management of the company we have three whole time Directors including me.
We have a board of 15 and the balance 12 are either representatives of the promoting companies which are four, and the rest are all independent Directors.
If it's a board-managed company, then yes, to that extent we would be coming in into the management of the company through the board through the board participation.
Q: Is there anything else that will come to the table aside from the additional 10 million metric tonne like you pointed out?
A: We are trying to get in 10 million metric tonne, but as you know, Qatar has already committed to the entire expansion which we are doing upto 77 milion metric tonne.
So we will have to wait and see how much more they can commit.

Govt plans to blend biogas with LNG-CNGPress Trust of IndiaNew Delhi, October 5, 2006

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After plans to dope petrol with ethanol, the government is now thinking of blending biogas with liquefied and compressed natural gas in order to increase the share of alternate fuel in the total energy mix.
Ministry of Non Conventional Energy Sources (MNES) has asked the private sector engaged in production of biogas to consider feeding biogas into the natural gas pipelines for the city gas projects being planned in different cities of the country.
"Biogas can be purified and compressed to meet the requirements of the city gas projects and thus throw a good opportunity for development and growth of biogas plants in the country," MNES Secretary V Subramanian said here on Thursday.
This will help the renewable energy sector in increasing its share in the total energy mix, he said.
Subramanian was speaking at the MNES sponsored national workshop on "Policy Framework for Biogas Programme for next 10 years" at IIT Delhi.
After tasting success with its city gas project in Delhi, Government is planning similar projects for various smaller cities like Nagpur, Surat, etc.
The Supreme Court, too, has given its mandate for supplying of gas for auto fuel to cities other than metros.
"These smaller cities can be focused for effecting synergy between biogas plants and the city gas distribution network coming up in those areas," Subramanian said.
Subramanian also asked the participants to deliberate upon the various challenges that the programme to popularise biogas plants in the country would face.
He also underlined that the renewable energy sector is not only supplying electricity produced from renewable and non-conventional sources but also helping in saving ecology by replacing firewood and fossil fuels.
He said 19 billion units of electricity generated from renewable energy sources was supplied during last year. "The total installed capacity of power from renewable energy sources has crossed 8,500 MW," he said.
The Workshop is being attended by the heads of rural development departments and state nodal agencies of various states/UTs implementing national biogas programme.
Besides, the heads of Regional Biogas Training Centres, senior scientists of ICAR Laboratories, among others, are also participating.
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Oil prices fall sharply
www.chinaview.cn 2006-10-03 05:11:31
NEW YORK, Oct. 2 (Xinhua) - World oil prices fell sharply on Monday as supply worries eased, shrugging off the news that Nigeria and Venezuela cut current output.
New York's main contract, light sweet crude for delivery in November, slid 1.88 dollars to close at 61.03 dollars a barrel.
In London, Brent North Sea crude for November delivery fell 2.03 dollars to settle at 60.45 dollars a barrel.
Nigeria and Venezuela, two of OPEC's 11 members, began to reduce their oil production by a combined 170,000 barrels per day from Sunday. OPEC spokesman Tarek Amin said the decisions were made voluntarily by each country, insisting they were not imposed by OPEC, according to AFP reports.
OPEC kept its official quota steady at 28 million barrels per day (bpd) at its last meeting in September, but said it could call an emergency meeting if necessary. The next meeting is due on Dec.14 in Abuja, Nigeria.
U.S. commercial crude oil inventories fell over the past week but supplies of gasoline and other refined fuels posted strong gains, the Energy Department said Wednesday in its weekly petroleum report. Crude futures have fallen more than 20 percent from its record 78.40 dollars per barrel in mid-July, as demand was downgraded and supply worries eased. Enditem
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$1B LNG hub closer to fruition
10/02/2006

McMoRan Exploration Co.’s nearly $1-billion plan to regasify natural gas at a new shallow-water hub in the Gulf of Mexico has “no significant impact” on the environment, the U.S. Coast Guard announced last Monday.
The ruling brings McMoRan closer to licensing its Main Pass Energy Hub project, which is expected to regasify 1 billion cubic feet of liquefied natural gas per day.
Approval is expected by Jan. 3, 2007. If approved, the hub located roughly 18 miles offshore in 210 feet of water would produce 1,000 new jobs. The three-year construction time is expected to create hundreds of construction jobs.
McMoRan is betting nearly $450 million in construction and startup costs, plus another $450 million for pipeline infrastructure. Collier said regasifying natural gas is crucial component of the industry.
When cooled, natural gas shrinks to 1/600th its normal rate for easier and more economical transfer. Before it can be distributed, however, it must be turned back into gas, or regasified.

Daewoo Shipbuilding Raises 2006 Order Target by 20% to a Record
By Kyunghee Park and Seonjin Cha
Oct. 1 (Bloomberg) -- Daewoo Shipbuilding & Marine Engineering Co., the world's second-largest shipyard, raised its target for new orders this year to a record $12 billion on increased demand to produce and transport energy goods.
The shipyard expects new orders this year will be 20 percent higher than its earlier forecast of $10 billion, the Seoul-based company said in an e-mailed statement today. It has clinched contracts valued at $10.2 billion so far in 2006. Last year, it won a total $6.8 billion worth of orders.
Daewoo Shipbuilding joins South Korean rivals Samsung Heavy Industries Co. and STX Shipbuilding Co. in increasing forecast for new orders this year, boosted by global demand for energy products. Shipyards in South Korea, home to the world's biggest, and other dockyards in Asia have been receiving contracts to build rigs and vessels to carry oil, liquefied natural gas and other products.
``Growth in trade and increased energy demand have helped South Korean yards secure a lot of orders, exceeding earlier expectations,'' said Song In Ho, who manages the equivalent of $423 million at Kyobo Investment Management Co. in Seoul. ``This momentum will most likely continue until next year.''
Daewoo Shipbuilding raised its order forecast this year after winning contracts for three vessels valued at $430 million. One of the contracts is for a ship that can carry LNG to Taiwan's TMT Co. by August 2010 and the other is for two vessels that can transport liquefied petroleum gas to Greece-based Brave Maritime Corp. by January 2010.
Samsung Heavy, the world's third-largest shipyard, raised in August its target to win new orders this year 56 percent to $12 billion. STX Shipbuilding, South Korea's seventh-largest, increased earlier this month its goal to secure $3.6 billion in contracts this year, from $2.6 billion.
`Expensive Vessels'
``We have also been able to secure more expensive vessels, making up for 88 percent of the total contracts,'' Daewoo Shipbuilding said in the statement.
With the latest $430-million order, Daewoo Shipbuilding has secured contracts for 14 LNG vessels with a backlog of 38, the biggest in the world, the company said. It also won contracts for 11 so-called very large crude carriers, or VLCCs, this year.
Orders for drillships, platforms and other offshore projects have reached a record $4.23 billion this year, almost tripling last year's $1.47 billion, the company said.
Daewoo Shipbuilding has an order backlog valued at about $23 billion, which will help keep its dockyards busy for more than three years.
South Korean shipyards have received orders for 9.6 million compensated gross tons, a measure of building time and human resources used per ton in the first half, 33 percent more than a year earlier.
Demand for Tankers
Shipowners have spent about $207 billion in the past three years on new vessels, including container carriers and tankers, the same amount as in the preceding decade, according to Clarkson Plc, the world's biggest shipbroker.
Demand for tankers also increased this year as the expanded global economy has spurred demand for oil and other raw materials. Global trade volumes will grow 7.6 percent this year, according to the International Monetary Fund.
Stricter safety rules that took affect in April have also driven demand for tankers. Ships built under the common structural rules require as much as 9 percent more steel to reinforce the hull, according to the American Bureau of Shipping. The guidelines affect VLCCs which are longer than 150 meters (492 feet).
The rules, set up to enhance safety of vessels, involve using thicker steel plates and increasing the number or size of frames used in the construction of ships.
This year, South Korean shipyards may win orders for 11.78 million compensated gross tons, a measure of building time and human resources used per ton, 15 percent more than in 2005, according to the Ministry of Commerce, Industry and Energy.
Exports of vessels are forecast to increase 26 percent to a record $22.3 billion, according to the ministry.
Daewoo Shipbuilding shares rose 0.3 percent to 30,600 won on Sept. 29, the highest closing price in almost two months. The stock has gained 11 percent this year, compared with a 0.6 percent decline in the benchmark Kospi index.
To contact the reporter on this story: Kyunghee Park in Singapore at kpark3@bloomberg.net ; Seonjin Cha in Seoul at scha2@bloomberg.net ; Last Updated: September 30, 2006 20:01 EDT